TOKYO—For 2023, Tokai Carbon is forecasting a 30-percent year-on-year rise in operating income to $119 million at its carbon black business, on projected sales of $1.2 billion, 20-percent higher than last year.
In its Spring 2023 newsletter to shareholders, Tokai Carbon said its carbon black business had continued to deliver record increases in sales and profit in 2022.
Last year, the carbon black business achieved a 39.2-percent year-on-year rise in net sales to $1.05 billion—41 percent of group-wide sales—while operating income jumped 39.8 percent to $93.7 million.
The gains were achieved amid global economic slowdowns linked to factors such as the COVID-19 pandemic and the war in Ukraine, according to Tokai Carbon.
While last year saw a decline in new vehicle production, this was offset by higher demand for replacement tires due to increased usage of vehicles for the transportation of people and goods, the company reported.
Tokai Carbon went on to focus on the U.S., where more than half of the company's carbon black production capacity is located.
The U.S., it noted, is home to many major tire manufacturers and is the world's second biggest carbon black market with a 15-percent share—behind only China (34 percent) and ahead of the European Union (12 percent).